How to build an Insurance Application: Guide for 2025

Development

Digital Transformation

February 07, 2025

How to build an Insurance Application: Guide for 2025

Today, insurance mobile apps and their development require constant change due to the introduction of new technologies. According to Mordor Intelligence, the InsurTech market will be worth around USD 32.47 billion by 2029. Therefore, this indicates that digital transformation is becoming a significant part of this industry.

Considering the importance of developing new businesses and modernizing existing ones, the Artkai team has prepared a guide in which we will fully consider all the advantages, disadvantages, and pitfalls of the insurance app development process. Because our team is experts in insurance mobile app development, we understand the effectiveness of a reliable insurance application that realizes the business expectations of your company.

It is worth noting that insurance apps can significantly simplify processes for the client sector and significantly improve the work of insurance agents and brokers. For example, in the USA, there are many platforms that help insurance market specialists optimize their business processes, such as Applied Epic platform.

To understand what functionalities should be considered when developing an insurance application, let's assume the main features of the platforms used by insurance agents and brokers in the USA.

Integration with multiple insurance companies - Such platforms provide access to a wide range of insurance products from different providers, allowing agents to offer clients the most profitable and relevant insurance solutions.
Customer Relationship Management (CRM) - Built-in CRM systems help agents track customer interactions, manage contact information, and improve service quality.
Process Automation - Tools for automatically calculating insurance premiums, generating quotes, and processing applications significantly reduce administrative burden and increase agent productivity.
Analytics and Reporting - Platforms provide detailed reports and analytical data, which help agents evaluate the effectiveness of their work and make informed decisions.

The modern insurance industry is focused on active modernization because implementing and developing innovations offers enterprises and insurance companies technical opportunities for successful business. To better understand how to realize the potential of your own company in Insuretech, it is worth distinguishing what types of solutions exist for specific sub-niches.

InsurTech Solutions: The Main Categories

Digital Brokerages & Aggregators

These platforms allow customers to compare insurance products from different companies and purchase policies directly. Therefore, insurance app development of this type focuses on improving user interaction, automatically calculating policy costs, and conveniently managing insurance documents.

Main subcategories:

Aggregator website or marketplace for comparing offers from different insurance companies (available in the web version and mobile application).
Dynamic real-time premium calculation mechanism for fast quotes.
Customer portal for policy management, contract renewal, and insurance claim submission.

Automated Underwriting & Risk Scoring

Such mobile insurance apps simplify risk assessment and insurance rate calculation using artificial intelligence, data analytics, and integration with external sources (credit bureaus, social networks, etc.).

They can apply:

Underwriting engine with advanced analytics and automated decision-making processes.
Risk assessment dashboard for underwriters and insurance companies.
Machine learning and AI modules for risk prediction and continuous process improvement.

Claims Management & Settlement

These solutions can automate or significantly simplify the claims process from initial incident notification to resolution.

Key components:

Claims Portal for self-service claim processing, document uploads, and claim status tracking.
Claims processing system with built-in fraud protection.
Collaboration tools for adjusters, agents, and clients.

On-Demand / Usage-Based Insurance

Insurance apps that can be activated or deactivated as needed, as well as pay-as-you-go models (e.g., mileage auto insurance, short-term travel insurance).

Components:

Mobile app for policy activation/deactivation and usage tracking (e.g., mileage, travel time).
Usage-based premium calculator (telematics, geolocation).
Billing and payment modules for automatic insurance premium accrual.

Telematics & IoT-based Insurance

This sub-niche uses real-world data from sensors, wearables, or vehicle telematics to assess risks and adjust insurance rates.

Possible applications include:

Driver behavior tracking app (acceleration, braking, speed).
Smart home monitoring (water leak sensors, fire detection).
Wearable portals for health/life insurance.
Analytics and reporting dashboards for risk assessment and personalized pricing.

Peer-to-Peer Insurance

These solutions involve insurance platforms that allow groups of users to pool risks. In the absence of insured events, unused funds can be returned or used in the future.

In practice, the following can be applied:

Group insurance platform with the ability to manage group policies.
Social features (friend invitations, group chats, application updates).
Transparent payment tracking system.

Microinsurance & Parametric Solutions

Represented in insurance app development, which is small or highly specialized and is paid automatically upon a specific event (e.g., flight delay, natural disaster).

Characterized by:

Application for parametric insurance (e.g., weather risk coverage for the agricultural sector).
System of automatic payments when predefined conditions are met.
Instant payment modules integrated with digital wallets or bank accounts.

Embedded Insurance Solutions

Applications that are integrated into third-party services, for example, in the process of booking travel or buying a car.

Components:

Built-in insurance widgets on third-party sites (for example, a flight booking page).
API integration of insurance coverage in e-commerce.
Quick registration of a policy through pop-up windows during purchase.

A narrowly focused approach to insurance mobile app development based on certain types will allow your business to target a specific target audience and provide a high-quality range of services.

Once the leading InsurTech solutions have been considered, it is worth understanding from a practical perspective what specific insurance app products can be.

Types of Insurance Products Offered by Companies

Understanding the modern insurance market is very important before starting the insurance app development process because it is important for customers to offer product value that will bring high results.

Therefore, let's take a closer look at what companies can offer:

Car Insurance Apps (Vehicle Insurance Apps)

A car insurance mobile app should include certain technologies that allow insurance providers to offer new ways for their customers to solve many issues quickly and easily.

The main advantages of a car insurance app are:

Fixing the details of an accident and filing a claim.
Repair estimation.
Driving style assessment.

Life Insurance Apps

The insurance industry is relatively developed today, so you need a life insurance app to protect yourself and your family in case of unforeseen events and have peace of mind. It is important to ensure the financial stability of the family in case of death and to fulfill necessary financial obligations, such as repayment of debts or mortgages, depending on individual situations.

Applications of this type include:

Setting up payments.
Selection of the optimal policy.
Online support. In most cases, an insurance app development company integrates chatbots into the system to quickly answer customer questions and analyze situations to solve problems.

Property Insurance Apps

A significant competitive advantage for property owners is the use of insurance apps. This is due to valuable tools that can help mitigate most risks. For example:

Insurance services management.
Filing claims.

Also, additional functionality of the insurance mobile app can include managing risks and coverage details.

Business Insurance Apps

Insurance is a powerful tool for any type of business that will protect against losses and unforeseen financial situations. Therefore, insurance app development covers the business sector. This applies not only to private transport and its insurance but also to logistics, large enterprises, etc.

The main goals of an insurance app development company for business are:

Support for business processes.
Convenience of filing claims.
Risk assessment and management.

Travel Insurance Apps

Insurance mobile app development for the travel industry implies software specifics that minimize the risks of travel and its courses or incidents. Insurance providers must ensure the user's safety during the flight, guarantee medical care if necessary, provide an action plan for luggage loss or damage, and much more.

That is why a modern insurance app can provide, depending on the specifics:

Medical support.
Travel documentation.
Insurance options for lost items.

Health Insurance Apps

Insurance app development in medicine is designed to simplify the often complex and lengthy process of managing health-related issues.

Such apps can include:

Search for medical specialists.
Comparison tools.

Each of these segments is constantly being updated, so the insurance industry must provide customers with convenient solutions that will guarantee the safety of their property and their lives.

In Fintech Trends to Adopt in 2025 and Beyond, Artkai experts have described how the fintech sector can personalize insurance services, automate most processes, offer new customer interaction models, and provide innovative insurance services.

Next, we will understand the impact of insurance mobile app development on business processes and what it can bring.

Business impact of insurance apps

Streamlining Operations

Insurance app software automates and optimizes various operational processes, making them more efficient and less likely to make mistakes.

The main niches that stand out are:

Underwriting: Modern AI algorithms and machine learning models allow for assessing risk factors and determining insurance premiums more accurately and quickly. This reduces the time required for manual underwriting and minimizes the human error factor.
Claims processing: Working with mobile insurance apps and their internal automated claims processing systems will speed up the assessment and settlement of claims. Artificial intelligence can verify documentation and identify anomalies. As a result, these systems will guarantee faster and fairer claims resolution.
Policy management: Insurance app development can significantly enhance and ensure smooth policy management, from issuance to renewal. Customers can easily access and update their policies online, reducing the administrative burden on insurance companies.

Reducing Costs

To conserve resources, the use of insurance app development can significantly contribute to cost savings in several key ways:

High efficiency. For example, it reduces the factor of primary human intervention since internal systems initially process the claims.
Data-Driven Insights. Valuable and meaningful data analytics can provide insurance providers with new relevant trends, options, and perspectives on better-allocating resources and avoiding unnecessary costs.
Automation. Routine tasks, such as data maintenance and document primary processing, can and should be automated with the help of a well-implemented software solution, which will ensure the entire insurance process is more convenient and of higher quality.

Improving Service Delivery

A high-quality and modern insurance app for insurance businesses is becoming indispensable for improving service quality and providing users with a personalized experience.

Insurance app development in this context is implemented through:

Digital platforms, web portals, or mobile insurance apps should be created to provide an opportunity to interact with the insurance provider and resolve immediate or planned issues.
Service personalization is achieved by analyzing customer data and algorithms that will be built to meet the user's needs, thereby increasing their loyalty.

Data-Based Decision-Making

The introduction of advanced technologies and data analytics in insurance app development will increase the insurance business's competitiveness.

For example:

Risk assessment. Analytics tools such as Tableau or Power BI analyze large amounts of data to do this.
Fraud detection. It is necessary to identify patterns characteristic of fraudsters. Using random forest and gradient-boosting tree analysis models will help assess potential risks in insurance and identify the client's solvency.

When you have identified the main types of insurance apps and their impact on business, the question arises. How can you apply all this to your own business from the practical side, or how important is it to choose a relevant strategy for digital transformation?

Artkai team specialists covered more details about development and modernisation in The Ultimate Guide to Fintech App Development and Modernisation in 2025, which revealed all the features of the Fintech industry and the particularly high demand for it.

In the next section, we will explore the step-by-step process in the context of insurance mobile app development and what it should be like to bring more value to the business besides stable operation.

The Step-by-Step Process of Developing an Insurance App

Creating a high-quality digital app requires simultaneous compliance with many aspects, including ongoing market research, integrations, and working with big data.

It is also important to note that insurance app development is closely related to fintech products. The process involves working with financial data, integrating payment systems, and maintaining a high level of security, as the insurance business consists of working with personal data.

If you want to understand what you should consider when creating a relevant product, we recommend that you read our Roadmap, which explores and discusses the main challenges and solutions in real cases.

So, to successfully ensure mobile app development and ensure high results, you need to adapt to the main processes:

Discovery

At this stage, it is worth conducting an in-depth analysis to further determine the development process. The purpose of the discovery stage is for the team to outline the goals, create a development plan with key milestones, and identify features in the insurance mobile app.

The main steps to be taken at this stage include:

Market research
Competitor analysis
Defining goals and ways to achieve them
Cost analytics

When the service provider team presents all these aspects to you, you can raise further essential insights such as risk management, ways to verify how to reduce costs, and whether you and the service provider team agree on the product vision.

Once the above aspects are apparent, you can move on to the application design and architecture.

Design and Architecting

This stage is important because it gives a real vision of the insurance app concept and its functionality. Along with design mockups, work is underway on the architecture, which includes a selection of the necessary technologies and platforms for the insurance app's smooth operation.

The main components of the design are highlighted:

Outlining the user experience and navigation using a UX Wireframe.
Interface designs for different screens
Clickable App Design to demonstrate all the functionality in a working prototype
The original Figma file so that all parties involved in the future insurance mobile app can get acquainted with it in detail and provide feedback.

The architectural part of this process includes working on the logical relationships of each structural component with the defined data schemas and identifying integrations that will be important for the correct operation of the insurance app.

Development and QA testing

The primary purpose of the insurance app development stage is to turn the UI/UX into a functional solution.This process requires careful planning and choosing the technology stack to ensure high performance, regulatory compliance, and integration with external services. Below, we will look at the main aspects of backend, frontend, and mobile development, as well as the importance of quality and security testing.

Backend development for insurance software focuses on the core infrastructure and logic that powers the system. This includes designing a scalable and secure server architecture, selecting appropriate database technologies and data models, and implementing complex insurance business rules.

Frontend development involves creating a user interface, integrating it with the backend, and optimizing and adapting it for different devices. It is also necessary to comply with the UI/UX in accordance with the layouts.

Below, we will examine the optimal technology stack for development. However, it may vary depending on the business's specifics:

Backend

.NET - can be used for corporate solutions with high-security requirements.
Java is scalable and used by large insurance companies.
Python - for AI/ML analytics and rapid development.
Go - for efficient microservice architecture.

Frontend

React.js - One of the most popular options for insurance platforms due to its flexibility and efficiency.
Angular - Suitable for complex enterprise solutions with a clear structure.
Vue.js can be used to develop MVPs.

Mobile development

React Native - A popular framework developed by Facebook, that offers near-native performance and allows for code reuse across iOS and Android;
Flutter - Developed by Google, it uses the Dart language and focuses on fast development and beautiful, natively compiled applications;
Swift (iOS) and Kotlin (Android) - Languages to build platform-specific mobile applications with the ultimate performance.

Conducting QA testing in several stages during and after development is crucial to ensuring that the insurance application meets security standards and that all functions work correctly.

There are several main parts of testing:

Functional testing - to check the correct operation of all elements.
Load testing - to evaluate the performance under heavy load.
Security and penetration testing - to find vulnerabilities and weaknesses in client data storage.

The audit assesses the security of personal data handling, encryption practices, and authentication mechanisms, leveraging tools like Burp Suite, SonarQube, or Qualys. Given the insurance industry's reliance on confidential information and sensitive financial transactions, such rigorous security audits are essential for maintaining compliance and protecting customer data.

Deployment

After the insurance app is ready and tested, it can be published on Google Play and the App Store or deployed in a web version.

The main tasks of this stage are:

Optimise infrastructure for correct operation on all platforms and devices
Publish on marketplaces with a consistent marketing strategy policy.
Set up an analytics system to track user behavior and progress.

Support & maintenance

It is important to constantly improve insurance app development and modernisation, as user feedback and analytical data can provide impetus.

Therefore, this phase may include:

Identifying and fixing bugs
Adding new functionality, which may include AI analytics and the use of chatbots for various applications, such as a car insurance app.
Ensure compliance with legal requirements.

Thus, the creation and development of an insurance app requires deep expertise from the service provider team, which is based not only on theory but also on practice and successful customer cases. The importance of each process stage, from Discovery to Support & Maintenance, plays a significant role in the operation of high-quality insurance mobile and web apps.

It is clear that insurance app development requires not only the technical side but also an understanding of legal aspects, policy details in the insurance sector, and customer experience.

Therefore, even a clear plan of action with their observance cannot guarantee 100% success. This process is accompanied by challenges that can be recognized initially, and business strategies can be prepared to solve the difficulties.

Next, we will consider your main challenges when working with an insurance mobile app.

Common Pitfalls in Developing an Insurance App

Any process in the insurance app development process can be fraught with challenges, especially regarding health insurance or life insurance apps. Therefore, decision-makers should pay attention to the potential problems they may face.

Data Security

Data security is the main point that you need to pay extra attention to. After all, numerous cases have involved significant financial costs, countless lawsuits, and the complete bankruptcy of the company due to a large-scale leak of user data.

The main reasons for this can be:

Use of irrelevant frameworks
Lack of full-fledged testing
Poorly written backend and frontend components.

Uptime And Reliability

A poorly chosen backend component or unreliable hosting can contribute to long-term and large-scale failures of the insurance app system. This can become a critical problem in an emergency when the client expects quick access to the service.

Leveraging Data And Insights

Data processing is an important aspect for insurance agencies, as it provides risk analysis and customer audience segmentation and opens up the possibility of creating predictive models for accurate premium calculation.

Therefore, it is worth verifying it, applying predictive modeling, and analyzing user activity to avoid difficulties with user data.

Regulatory Compliance

The insurance industry is highly regulated, and regulatory compliance requirements vary internationally. Failure to comply with regulations such as HIPAA for health insurance in the US, GDPR for European customers, or state insurance laws can result in legal fines, reputational damage, and financial losses.

Therefore, when developing, it is worth ensuring that:

Keep track of constantly changing regulatory requirements.
Ensure that data is securely stored and processed by regulatory requirements.
Implement an audit and recordkeeping system to ensure regulatory compliance.

Integration with Third-Party Services

Insurance apps often rely on external payment gateways, CRM systems, underwriting APIs, and telematics data. Incorrect integration can lead to data transfer issues, performance issues, or vulnerability to attacks.

This can be characterized by:

API request limits or unexpected failures in third-party services.
Data synchronization issues between the app and other platforms.

Of course, developing and launching an insurance app may be difficult. Still, it is worth evaluating these aspects and systematically improving the product's effectiveness so that user data and other sensitive information do not fall under the control of fraudsters.

Conclusions

Insurance app development is a rather extensive process. Still, its value and necessity are expressed in insurance companies' need to provide high-quality and full-fledged services to meet basic customer needs, which will facilitate further scaling of various types of insurance apps.

If your company is ready to create or upgrade its insurance app, the Artkai team has full expertise and is ready to provide it in the development of an insurance mobile app. It is engaged in creating effective products that will meet modern business needs and develop the global insurance market.